Hong Kong stocks outperformed in an otherwise muted Asian market, while bonds in the region fell as traders recalibrated their bets on the Federal Reserve’s easing. Shares in Hong Kong jumped after a two-session holiday, tracking Monday’s gains in their mainland counterparts. Xiaomi Corp. contributed the most to the advance in the city’s benchmark following its debut electric vehicle. A rally in Chinese shares took a breather. Japanese shares erased morning gains as the yen steadied after weakening on Monday against the dollar to around the lowest levels of the year. The decline has increased the risk that Japanese officials may intervene in the market. Equity bulls in Asia appear to have hit a wall at the beginning of the second quarter after stocks recorded their best start to the year since 2019. Doubts over the quantum of rate cuts by the Fed and caution ahead of key economic data releases later this week are weighing on sentiment. US equity futures saw mild losses after the S&P 500 fell 0.2% Monday while the Nasdaq rose by the same margin. In the bond market, Australian and New Zealand yields climbed, echoing moves in Treasuries. US bonds steadied in Asian trading after falling across the curve Monday — with 10-year yields rising over 10 basis points — as manufacturing unexpectedly expanded for the first time since September 2022 and input costs climbed. Following the report, the amount of Fed easing priced into swap contracts for this year slid to around 65 basis points — less than forecast by policymakers. While the market appears “content” to point toward the manufacturing release as the trigger for the move in Treasuries, there was already a bond selloff underway prior to the headlines, said Ian Lyngen and Vail Hartman at BMO Capital Markets. The Institute for Supply Management’s manufacturing gauge rose to 50.3 last month. While barely above the level of 50 that separates expansion and contraction, it halted 16 straight months of shrinking activity. At the same time, the group’s index of prices paid rose to 55.8, the highest since July 2022. Later this week, data is expected to show employment gains continued in March while wage growth moderated. Fed Chair Jerome Powell — who is set to speak Wednesday — said Friday that officials are awaiting more evidence prices are contained, adding that it wouldn’t be appropriate to lower rates until officials are sure inflation is in check. In Australia, the central bank will switch to a new system for the implementation of monetary policy as passive quantitative tightening leads to a decline in reserves in the banking system, RBA Assistant Governor Christopher Kent said on Tuesday. Elsewhere, Indonesia’s rupiah slumped to its weakest against the dollar since 2020 amid foreign funds continuously selling local bonds on worries over the incoming administration’s pledges to boost spending. In commodities, oil held near a five-month high with heightened geopolitical risks in the Middle East and tighter supply from Mexico helping to buoy prices. Gold was steady after hitting an all-time high in the previous session. US After Hours NGS +2.5% up mildly on earnings; PVH -19.2% plummeting on quarterly results; health insurers sinking on MA rate update.
Nikkei +0.05% Hang Seng +2.20% CSI -0.54%% Shanghai -0.29% Shenzen -0.66%
Eur$ 1.0731 CNH 7.2644 CNY 7.2347 JPY 151.77 GBP 1.2548 CHF 0.9064 RUB 92.4250 TRY 32.2655 WTI$ 84.15 +0.53% Gold 2,254 +0.12% BTC 66,560 -4.60% ETH 3,359 -3.94%
S&P -0.16% Nasdaq -0.18% EuroStoxx +0.06% FTSE +0.02% Dax -0.02% SMI
Macro :
- Hedge Funds Bet on Europe in Hunt for Next Leg of Stock Rally
- ECB’s Holzmann Won’t Seek 2nd Term as Austrian Bank Governor
- BOJ’s Next Hike Likely in October at Earliest, Ex-Official Says
- Japan & EU to Develop Materials for Chips & EVs: Nikkei
- London Is Losing Out on New Job Listings for Head Office Staff
- Gold Jumps to Record as Favored Fed Inflation Gauge Stokes Rally
- Erdogan Suffers Historic Loss in Turkey Municipal Elections
Keep an eye on :
- AIR FP : Mahindra Unit Inks $100 Million Deal With Airbus to Supply Parts
- AFP SW : Constantia Offers to buy Aluflexpack for CHF15 to CHF18.75/Shr
- AML LN : Abu Dhabi’s CYVN Said to Weigh Backing Sports Car Maker McLaren
- ALATA FP : ATARI: Atari Buys Rollercoaster Tycoon 3 From Frontier
- ATO FP : Atos Says Refinancing Talks Could Result in Dilution for Holders
- BMW GY : Tata Tech, BMW Group Form Joint Venture for Automotive Software
- BA US : US Considering New Military Sales to Israel: Politico
- DE SS : Ellevio Offers SEK90/Share in Cash for Dala Energi AB
- ECV GY : LyondellBasell, Encavis Sign 208 MW Power Purchase Agreement
- EDF FP : EDF Names New Head of Nuclear Plant Projects Amid Cost Overruns
- ELAN US : Activist Ancora Is Said to Win Two Board Seats at Elanco
- ENEL IM : Value: Exclusive: Silveira says Enel 'crossed the line' and asks Aneel to consider all forms of punishment
- EQT SS : *EQT IS SAID TO NEAR $3B DEAL FOR COMPLIANCE RISK FIRM AVETTA
- RACE IM : Abu Dhabi’s CYVN Said to Weigh Backing Sports Car Maker McLaren
- FIVE LI : Russia Moving to Forcibly Redomicile Supermarket Operator X5
- GRTS US : Gritstone bio Announces Positive Preliminary Progression-free Survival and Long-term Circulating Tumor DNA (ctDNA) Data from
- HNSA SS : Hansa Biopharma Prelim 1Q Net Revenue Beats Estimates
- INCH LN : AutoNation Considers Offer for Inchcape’s UK Operations: Sky
- INTRUM SS : Cerberus Mulls Bigger Intrum Partnership as Company Tackles Debt
- IOS GY : Ionos Gets Up to €410M Contract From German Administration: DPA
- IPN FP : Ipsen, Sutro Biopharma in Global Licensing Pact for STRO-003
- IRE IM : Iren to Buy 50% of New Company Holding EGEA Operating Branches
- FWONA US : Liberty Media to Buy Commercial Rightsholder of Motogp
- LONN SW : Lonza Hires Siegfried’s Wolfgang Wienand as CEO (1)
- MSFT US : Microsoft to Separate Sale of Teams, Office Globally: Reuters
- MONC IM : Moncler Store Density May Lift Its Edge, Margin vs. Canada Goose
- NEOEN FP : Neoen taps Bank of America to sell $1.6b stake in local renewables biz
- NIO US : NIO Inc. Provides March and First Quarter 2024 Delivery Update
- PSH NA : Pershing Square Holdings March Net Performance +3.2%
- PVH US : Calvin Klein Owner PVH Tumbles 20% on Warning of Europe Weakness
- RNO FP : French New Car Sales Decline 1.5% in March, PFA Association Says
- REP SM : Repsol Nears Deal to Buy 100% of Ibereolica Chile: Expansion
- ROVI SM : Rovi Gets FDA’s Approval for Risvan as Schizophrenia Treatment
- SFZN SW : Siegfried CEO Wienand to Step Down, Suter Named Interim CEO
- GLE FP : SocGen and AllianceBernstein Start Bernstein Equities JV
- STLAM IM : Chrysler Files Recall of 223 Vehicles: NHTSA
- STLA% IM : Stellantis to Sell New Electric Jeep SUV in Korea in Second Half
- UHRN SW : Swatch CEO Says Take-Private Risks ‘Massive Debt,’ NZZ Reports
- TLGO SM : Spain’s Renfe Speeds up €166m Claim Against Talgo: Cinco Dias
- TIT IM : Bluebell Is Said to Present Candidates For Telecom Italia Board
- TRN IM : Greece Signs Egnatia Odos Concession Deal With Gek Terna-Egis
- 2303 TT : UMC Gets New Orders to Make Chips for Apple’s New iPhones: EDN
- X US : Japan’s Amari Says US Steel Deal Would Help Counter China Risks
- UBSG SW : UBS Boosts Investor Returns With $2 Billion 2024 Buyback Plan
- VWS DC : Vestas’s 1Q Order Intake Was a Modest €1.9 Billion, Sydbank Says
- VLTSA FP : Voltalia FY Normalized Ebitda Beats Estimates